STATE OF WEST VIRGINIA PUBLIC SCHOOL SUPPORT PROGRAM. Office of School Finance. Overview

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1 STATE OF WEST VIRGINIA PUBLIC SCHOOL SUPPORT PROGRAM Based on the 2 nd Preliminary Computations For the Year Office of School Finance WVDE-OSF 1 Office of School Finance Office Staff: Joseph Panetta - Executive Director Susan Smith, CPA Coordinator Misty Price, CPA Coordinator WVDE-OSF 2 Overview Plan of financial support for the public schools - basic 7 step program with other allowances added WVDE-OSF 3 Office of School Finance 1

2 Overview Comprehensive changes made to the PSSP beginning with the year Increased allowances between the old and revised formulas phased-in over a five year period Any district projected to receive less state aid under the new provisions held harmless during the 5 years WVDE-OSF 4 Overview Step 1 - Professional Educators Step 2 - Service Personnel Step 3 - Fixed Charges Step 4 - Transportation Step 5 - Prof. Student Support Personnel WVDE-OSF 5 Overview Step 6 - Other Current Expense, Substitute Employees, Faculty Senates Step 7 - Improvement of Instructional Programs Sum is Total Basic Foundation Allowance Less: Local Share State Aid Allowance WVDE-OSF 6 Office of School Finance 2

3 Overview Teachers Retirement (Step 3) PEIA RESAs (Step 5) Other allowances WVDE-OSF 7 Overview Allowances for Steps 1-3, 5 & 6 determined by enrollment Allowance for Step 4 determined by actual expenditures for transportation Allowance for Step 7 determined by growth in local share WVDE-OSF 8 Revisions Bases computations for steps 1, 2, & 5 on net enrollment Eliminates adjusted enrollment limits WVDE-OSF 9 Office of School Finance 3

4 Revisions Divides districts into four groups, based on net enrollment per square mileage: Sparse - < than 5 students/sq. mi. Low - 5 to < than 10 students/sq. mi. Med - 10 to < than 20 students/sq. mi. High 20 or more students/sq. mi. WVDE-OSF 10 Revisions Sets funding limits for year at: Group PE PI SP Sparse Low Medium High WVDE-OSF 11 Revisions Provides additional allowance for districts with less than 1,400 students: Determine the enrollment difference between actual enrollment and 1,400 Multiple the difference by the percent derived by dividing each district s student pop. density into student pop. density of district with least density Restricts total net enrollment to 1,400 WVDE-OSF 12 Office of School Finance 4

5 Revisions Identifies school counselors and nurses as professional student support personnel and funds these personnel in Step 5 WVDE-OSF 13 Revisions Uses the same four groups created under steps 1 & 2 for determining allowance for student transportation (Step 4) WVDE-OSF 14 Revisions Bases allowance on following percents of actual expenditures: Group % Sparse % Low % Medium % High % WVDE-OSF 15 Office of School Finance 5

6 Revisions Provides an additional allowance of 10% to districts that use alternative fuel Provides an additional allowance of 10% to districts that transport students to and from multi-county vocational center, based on mileage allocation WVDE-OSF 16 Revisions Provides an allowance for advanced placement at 1.0% of state average per pupil state aid times no. of students in advanced placement, dual credit and international baccalaureate programs WVDE-OSF 17 Revisions Provides an allowance for alternative education programs at $12 per net enrollment student WVDE-OSF 18 Office of School Finance 6

7 Revisions Requires that an appropriation be made to the WVDE each year to be distributed to the school districts with high acuity special need students ($ 1 million for year) WVDE-OSF 19 Terminology Enrollment Student enrollment Net enrollment Personnel Professional personnel Professional educators Professional instructional personnel Professional student support personnel Service personnel WVDE-OSF 20 Student (Headcount) Enrollment Number of students who are enrolled in the public schools in the state as of last day of second school month Each student counted one time, regardless of the amount of time they attend WVDE-OSF 21 Office of School Finance 7

8 Net Enrollment Student enrollment adjusted to a full-time equivalency (FTE) basis Adjustments for students who are: Enrolled in early childhood programs who attend less than full-time Enrolled in private or parochial schools who attend public schools for a portion of the day WVDE-OSF 22 Early Childhood Program FTE based on following clock hours for both types of programs (district programs and community based): 25 hrs per week FTE 22 hrs per week FTE 20 hrs per week FTE 17 hrs per week FTE 15 hrs per week FTE 12 hrs per week FTE WVDE-OSF 23 Professional Personnel Personnel who meet the certification or licensing requirements of the state Includes: Professional educators Other professional personnel (licensed): Treasurers/CSBOs Attorneys Nurses Counselors WVDE-OSF 24 Office of School Finance 8

9 Professional Educators Personnel employed for instructional purposes, such as: Teachers, librarians, technology integration specialists Attendance directors Principals, assistant principals Directors of Instructional Programs Superintendents, assistant superintendents WVDE-OSF 25 Professional Student Support Personnel School Nurses with a four year degree School Counselors WVDE-OSF 26 Professional Instructional Personnel Consist of: Classroom teachers Librarians Attendance directors School psychologists WVDE-OSF 27 Office of School Finance 9

10 Service Personnel Service Personnel - Personnel employed in class titles identified in WVC 18A-4-8 WVDE-OSF 28 Data used in calculations Employment and enrollment data - last day of second school month Transportation - latest year for which data is available Local share - certificates of valuation for current tax year (issued March 3 of each yr) WVDE-OSF 29 Step 1-Allowance for Professional Educators An allowance to pay the: annual state basic salary supplemental equity WVDE-OSF 30 Office of School Finance 10

11 Step 1-Allowances Basic Salary State Minimum Salary for Teachers WVC 18A-4-2 State Equity Supplemental amount paid to equalize teachers salaries among all 55 county school districts WVC 18A-4-5 Principals Increment WVC 18A-4-3 Bonuses: Classroom teachers with 20+ years National certifications WVDE-OSF 31 Step 1 Personnel Limits Allowance limits increase by.05 each year during the phase-in Requires that any additional positions created as a result of these increases: Enhance student achievement Are consistent with needs identified in each district s strategic improvement plan WVDE-OSF 32 Step 1 Personnel Limits Encourages districts to fill at least some of the additional positions with technology integration specialists WVDE-OSF 33 Office of School Finance 11

12 Professional Instructional Personnel Of total professional educators allowed for funding, requires county boards to employee minimum number as professional instructional personnel Failure to do so results in reduction of funding by number of personnel employed below requirement WVDE-OSF 34 Professional Instructional Personnel Districts with net enrollment increases exempted All districts are exempted from requirement for the five year phase-in period ( year) WVDE-OSF 35 Step 1 Special Provisions Funded for 200-day employment term 1/10 of 1% of total allowance for Step 1 must be set aside for professional educators staff development councils WVDE-OSF 36 Office of School Finance 12

13 Step 2 Allowance for Service Personnel An allowance to pay the: monthly state basic salary supplemental equity WVDE-OSF 37 Step 2 Allowances Basic Salary State Minimum Monthly Pay for Service Personnel WVC 18A-4-8a8a State Equity Supplemental amount paid to equalize service personnel salaries among all 55 county school districts WVC 18A-4-5 Bonuses and additional payments: Educational Bonus Shift differential pay Supervisory of students pay Specialized health care procedures pay WVDE-OSF 38 Step 2 Special Provisions Funded for full employment term Personnel counted on an extended FTE basis - (Employed full year days = FTE 1.305) To compute FTE - divide no. days employed by 200 (Example 220 days employed / 200 = 1.1) 1/10 of 1% must be set aside for service personnel staff development councils WVDE-OSF 39 Office of School Finance 13

14 Step 3- Allowance for Fixed Charges An allowance to cover the employers share of contributions for employee benefits: Based on percentage of allowances for steps 1-2 Social security actual rate (7.65%) Unemployment compensation (0.04%) Workers compensation computed each year (state average determined by multiplying each district s actual rate x steps 1-2 allowance (1.17%) Sub-total (8.86%) Retirement (discussed later) WVDE-OSF 40 Step 4- Allowance for Student Transportation Allowance for current operating costs Based on actual expenditures for latest year for which data is available Does not include allowance for: Salaries (Included in steps 1 and 2) Expenditures for capital improvements other than school buses WVDE-OSF 41 Step 4 - Allowances Allowanceforcurrent operating costs: Group Pct % 92.5 % 90.0 % Sparse 95.0 % Low 92.5 % Medium 90.0 % High 87.5 % WVDE-OSF 42 Office of School Finance 14

15 Step 4 - Allowances (Cont.) 10% additional allowance for portion of bus fleet that uses alternative fuels 10% additional allowance for transporting students to and from multi-county vocational centers (20 districts), based on mileage allocation 100% of insurance premium costs WVDE-OSF 43 Step 4 - Allowances (Cont.) 8.33% of the current replacement value of the bus fleet (12 year replacement cycle) Funding for additional buses for districts with increased enrollment Aid paid to students in lieu of transportation based on state average rate WVDE-OSF 44 Limits Each district s allowance is limited to one third (1/3) above the state average allowance on a per mile basis. 1/2 of 1% of each district s transportation allowance must be expended for academic classroom curriculum trips. WVDE-OSF 45 Office of School Finance 15

16 Step 5 Allowance for Professional Student Support Personnel Group consists of school nurses and school counselors Funds the number of these personnel employed during the year at the same percent as the number of PE allowed to funded Increases this percent by.5% per year during the phase in WVDE-OSF 46 Step 5 Allowance for Professional Student Support Personnel Requires that the additional positions created for counselors as a result of the.5 % increase per year be assigned to schools where the counselor can: Enhance student achievement Provide early intervention in grades pre-k through 5 Enhance student development WVDE-OSF 47 Step 6 Allowance for Other Current Expense, Substitutes and Faculty Senates Allowance based on the following: Current expense - 10% of steps 1, 2, & 5 (Distributed on avg. of net enrollment and ADA) Substitute costs - 2.5% of Steps 1 & 2 (Distributed on number of personnel allowed) Faculty senates - $200 per professional instructional personnel employed (First two no longer limited to 104% growth above previous year s appropriation) WVDE-OSF 48 Office of School Finance 16

17 Step 6 Allowances (Cont d) Distribution: Current Expense -Proportional based on average of net enrollment and average daily attendance Substitutes - Proportional based on number of personnel allowed Faculty Senates - Number of professional instructional personnel employed WVDE-OSF 49 Step 7 Allowance for the Improvement of Instruction Programs Allowance for Improvement of Instructional Programs Allowance for 21 st Century Technology Systems Allowance for Advanced Placement Allowance for debt service on bonds issued prior to 1994 WVDE-OSF 50 Step 7 Allowance (Cont d) Allowance for Improvement of Instructional Prgrms: Appropriation based on amount appropriated previous year plus 15% of growth in local share above the $ 7 million allocated to the Teachers Retirement System Distribution based on the following: $150,000 base to each county board The balance is distributed on the average of each county board s net enrollment and average daily attendance. WVDE-OSF 51 Office of School Finance 17

18 Step 7 Allowance (Cont d) Allowance for 21 st Century Technology Systems: Appropriation based on amount appropriated previous year plus 15% of growth in local share above the $ 7 million allocated to the Teachers Retirement System Allocation based on net enrollment WVDE-OSF 52 Step 7 Allowance (Cont d) Advanced Placement: Appropriation based on 1% of state average per pupil state aid multiplied by number of students enrolled in dual credit, advanced placement, and international baccalaureate courses Distribution based on students enrolled in those courses WVDE-OSF 53 Step 7 Allowance (Cont d) Allowance for the SBA: Allowance for debt service requirements on bonds issued prior to January 1, 1994 Distributed to SBA for debt service WVDE-OSF 54 Office of School Finance 18

19 Total Foundation Allowance The sum of the preceding seven steps WVDE-OSF 55 Local Share Estimation of each district s regular levy tax collections for the year Excess levy notincluded WVDE-OSF 56 Local Share Calculation: For the year - 90% of each county s projected regular levy tax collections for the year less: Allowance for uncollectibles (5%) Allowance for Assessor s Valuation Fund Assessed valuation of property included in Tax Increment Financing (TIF) projects Allowance for Growth Counties School Facilities Act WVDE-OSF 57 Office of School Finance 19

20 Local Share The local share percent stays at 90% in future years. SB 540 deleted the requirement for the 3 years through years that if the assessment ratio dropped below 54%, the local share percent would return to 98% for that county board. WVDE-OSF 58 Local Share Beginning with the fiscal year, local share to be based on a report provided by the State Tax Commissioner by Dec 1 of each year. Report will be issued on the assumption that all property is appraised at fair market value, so the assessed valuation will be 60% of that value. WVDE-OSF 59 Basic State Aid Total foundation allowance less local share Amount each school district receives from the State WVDE-OSF 60 Office of School Finance 20

21 Retirement Allowance 15% of basic allowance for: salary allowance under steps 1 & 2 equity appropriations county supplements equal to equity Additional amounts provided for unfunded liability WVDE-OSF 61 PEIA Allowance Based on an average premium rate for all county board employees provided by the PEIA Finance Board multiplied by number of professional and service personnel allowed for funding For the year, the average allowance rate for PEIA for health and basic life is $6, per employee WVDE-OSF 62 Additional Allowances Increased enrollment Alternative education programs Extraordinary sustained enroll growth County transfers State teacher of the year Workers compensation for unpaid student work-based learning prgrms Incentive for administrative efficiency WVDE-OSF 63 Office of School Finance 21

22 Other Selected Allowances Not a part of PSSP, but include: High acuity health care needs High acuity special education needs Education program allowance WVDE-OSF 64 Eliminated Allowances The following allowance are being phased out over the five year period: 34/1,000 waiver requests Additional school nurses Low student enrollment Sparse population allocation WVDE-OSF 65 Questions/Discussion WVDE-OSF 66 Office of School Finance 22

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